Today I will tell you how not to screw on the stock market using 11 rules.

✅ It is necessary to remain a realist.

Illusions are especially dangerous when your money is at stake. We will be honest, you are not the best investor in the world, none of us is the best. For an ordinary private investor, get a lot of luck to medium market profitability.

Private investors in the total mass trade equally poorly. Over the past 20 years, the average investor earned about 2.1% per annum (and the S&P 500 index on average by 8.2% per year).

✅ The market will not make you rich.

But with the right approach, it will help to preserve and increase your funds.

✅ The market has 2 types of profitability: investment and speculative.

Investment is formed by companies that earn profit and share it in one form or another with shareholders and holders of debt papers - this is the redistribution of income from the real sector of the economy to financial. And here all parties may win.

The market forms speculative profitability. Its principle is simple: buy something and find the one who will buy from you more expensive. Entering these "rat run", remember that in addition to you, another 500 million investors around the world are involved, who also really want to win.

But only the strongest win - this is the redistribution of money from greedy to experienced.

✅ You need to rush to do something.

The market is a series of endless solutions, each of which should be pondered. The hype of the crowd is the last thing that is worth guided in the stock market.

✅ DO NOT GROWN. Less received profit is always better than direct losses.

I divide investors into 2 parts: the 1st of them suffers more from the undertaken profit, for example, when they sell paper after 10%, and it makes another +30%in a week; The 2nd part of investors is more worried when it sees a loss in his accounts.

✅ Prefer, how to buy an asset, think about why you buy it, what you count on and what you will do if your calculation is incorrect.

That is, have an action plan and a spare plan - this will protect you from spontaneous and emotional solutions.

✅ Don't try to keep up with the news.

Everything that you see in the news has long been known to everyone. But not everyone knows how to evaluate the future income of the company, to conduct a fundamental analysis.

✅ The market not only gives, but also selects.

This is part of the process, and this should be treated accordingly. There is not a single investor in the world who would not make a single mistake. You just need to keep losses under control. While you are taking more than you give, you are considered a successful investor.

✅ The market is a very dangerous place, and you know far from all about it.

There are risks that you know about and know how to deal with them; There are risks that you heard about, but never encountered; And there are risks that you do not even suspect about the existence of.

The market never needs to relax, the situation can change in 1 day, and a new black swan will appear on the horizon.

✅ Book patience, an investment portfolio is a story for a lifetime.

The ability to save is more important than good luck in the market; Regularity, sequence and risk control is more important than good luck in the market.

✅ Do not succumb to emotions.

Neither euphoria (after a successful period), nor depression (after your portfolio fell into the red zone). Emotions only interfere and force you to perform rash actions that increase your loss.

Write in the comments if you follow these rules or not.

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